Personal Property Lease

• Category: Leases - Equipment
• State: Multi-State
• Control #: US-0828BG
• Format: Word; Rich Text

Description Lease Machinery Equipment

According to Article 2A of the Uniform Commercial Code, personal property leases requiring total payments of $1,000 or more are not enforceable unless there is a writing, signed either by the party against whom enforcement is sought or by that party's authorized agent. The writing must sufficiently indicate that a lease contract has been made between the parties, and must contain a description of the goods leased, and the term of the lease. A description of the goods to be leased or the lease term is sufficient if it reasonably identifies what is described. Article 2A also contains provisions regarding the inclusion of, and limitations on, express and implied warranties. Any promise or affirmation of fact by the lessor that is part of the basis of the bargain creates an express warranty that the goods will conform to the promise or affirmation. A description of goods made part of the basis of the bargain creates an express warranty that the goods will conform to the description, just as a sample or model made part of the basis of the bargain creates an express warranty that the goods will conform to the sample or model. It is unnecessary to use formal words in the lease agreement to create an express warranty, nor need the lessor have a specific intent to make a warranty. Such express warranties may be negated or limited through written provisions in the contract, but such language must be subject to reasonable interpretation to be effective. Personal Property Lease of Machinery and Equipment is a type of lease agreement in which a lender (the lessor) grants a borrower (the lessee) the right to use specific personal property such as machinery and equipment in exchange for periodic payments. The lessor reserves the right to repossess the equipment and terminate the lease if the lessee fails to make the payments. Types of Personal Property Lease of Machinery and Equipment include finance leases, capital leases, and operating leases. Finance leases involve the transfer of ownership of the equipment to the lessee upon completion of the agreement, while capital leases involve long-term commitments and may include options to purchase the equipment at the end of the lease. Operating leases are generally shorter-term agreements and involve the use of the equipment without the transfer of ownership.

Personal Property Lease of Machinery and Equipment is a type of lease agreement in which a lender (the lessor) grants a borrower (the lessee) the right to use specific personal property such as machinery and equipment in exchange for periodic payments. The lessor reserves the right to repossess the equipment and terminate the lease if the lessee fails to make the payments. Types of Personal Property Lease of Machinery and Equipment include finance leases, capital leases, and operating leases. Finance leases involve the transfer of ownership of the equipment to the lessee upon completion of the agreement, while capital leases involve long-term commitments and may include options to purchase the equipment at the end of the lease. Operating leases are generally shorter-term agreements and involve the use of the equipment without the transfer of ownership.